BHM Capital Ends Liquidity Deal with GFH Financial

BHM Capital Financial Services PSC, a prominent financial services provider in the UAE, has announced the termination of its liquidity provision agreement with GFH Financial Group B.S.C. This decision will take effect from April 18, 2025, and follows a strategic shift by GFH Financial Group, which recently suspended its liquidity provision activities to focus on treasury share buyback programs.

The termination of this agreement marks a significant development in the financial landscape of the UAE, particularly in the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX), where BHM Capital has been an influential player. The move is aligned with GFH's announcement on February 16, 2025, indicating a strategic pivot towards enhancing shareholder value through share buybacks.

BHM Capital, known for its pioneering role in financial technology and investment services, continues to maintain its robust presence in regional and international markets. Despite the termination of this particular agreement, the company remains committed to offering a wide range of financial services, including prime brokerage, investment management, and corporate advisory.

For investors, this development presents an interesting juncture. The cessation of the liquidity provision agreement could lead to changes in trading volumes and market dynamics for GFH shares on the DFM and ADX. However, BHM Capital's diverse portfolio and strategic initiatives suggest continued stability and growth potential.

Given the current scenario, investors holding BHM Capital's shares might consider maintaining their positions. The company's strategic focus on innovation and client care, coupled with its regulatory compliance and market expertise, positions it well for future growth. Therefore, the recommendation is to hold the stock, as BHM Capital navigates this transition while continuing to leverage its strengths in the financial sector.